Wall Street Rises as S&P 500 Recovers After Last Week’s Sharp Drop/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street saw modest gains Monday, recovering from last week’s sharp losses as the S&P 500 rose 0.3% and the Dow added 155 points. Positive earnings from Berkshire Hathaway and job cuts at Starbucks helped lift sentiment, while Nvidia’s upcoming report and inflation data loom. Investors remain cautious amid Federal Reserve rate concerns and global economic uncertainties.
Wall Street Recovery: Quick Looks
- Market Rebound: S&P 500 up 0.3%, Dow Jones gains 155 points, Nasdaq rises 0.3%
- Berkshire Hathaway profits: Stock climbs 2.4% on strong quarterly earnings and $334.2B cash reserves
- Starbucks trims workforce: Shares up 0.6% after cutting 1,100 jobs under new CEO Brian Niccol
- Domino’s Pizza dips: Drops 4.6% after mixed earnings and weaker U.S. sales trends
- Nvidia earnings in focus: Market anticipates Wednesday’s report amid AI competition from China’s DeepSeek
- Inflation concerns linger: High inflation, Trump policies, and Fed’s interest rate stance weigh on sentiment
- Global markets mixed: German DAX rises 0.7% post-election, while France’s CAC 40 and Hong Kong’s Hang Seng decline
Wall Street Rises as S&P 500 Recovers After Last Week’s Sharp Drop
Deep Look
NEW YORK (AP) — Wall Street started the new week on a positive note, with U.S. stocks edging higher Monday and recovering some of the sharp losses experienced last week.
The S&P 500 rose 0.3% in early trading, recouping part of its 1.7% drop from Friday, while the Dow Jones Industrial Average gained 155 points (0.4%) and the Nasdaq composite climbed 0.3%.
Berkshire Hathaway Leads Gains With Strong Earnings
Investor optimism was buoyed by Berkshire Hathaway, whose shares jumped 2.4% after reporting a surge in quarterly operating profits. The conglomerate revealed a massive $334.2 billion in cash reserves, suggesting Warren Buffett sees few attractive investment opportunities in what some call an overvalued market.
Starbucks Job Cuts Offer Operational Optimism
Starbucks also contributed to market gains, up 0.6% after announcing plans to cut 1,100 corporate jobs and leave several hundred positions vacant. The move, part of new CEO Brian Niccol’s strategy to streamline operations, was welcomed by investors seeking improved profitability.
Domino’s Pizza Sinks on Mixed Results
On the flip side, Domino’s Pizza fell 4.6% after reporting quarterly results that slightly missed Wall Street expectations. While its international operations performed well, U.S. corporate-owned store sales weakened, raising concerns about domestic growth.
Investors Eye Nvidia and Key Economic Data
This week’s spotlight turns to Nvidia, whose earnings report on Wednesday could significantly sway markets. The chipmaker, a leader in AI technology, faces fresh competition after Chinese tech firm DeepSeek claimed to develop a rival large language model without top-tier Nvidia chips.
Other notable earnings include Home Depot (Tuesday) and Salesforce (Wednesday), with investors eager to assess broader economic resilience.
Inflation and Fed Policy Remain Top Concerns
Inflation worries remain front and center. Recent data shows weakening consumer sentiment amid rising prices, driven partly by President Donald Trump’s tariffs and policy decisions.
Though the Federal Reserve cut rates last year, it has since paused. Officials have expressed concerns about how Trump’s proposed tariffs and immigration policies could add inflationary pressure. Markets are bracing for updates on consumer confidence and inflation trends this week.
Bond Yields Steady Ahead of Reports
Treasury yields held firm, with the 10-year yield inching up to 4.44% from Friday’s 4.43%. Investors continue to monitor bond markets for clues about future Fed moves.
Global Markets Mixed as Germany Rallies Post-Election
International markets saw mixed results:
- Germany’s DAX rose 0.7% after conservative parties secured election victories, easing investor concerns about Europe’s largest economy.
- France’s CAC 40 slipped 0.5%, reflecting broader European caution.
- Hong Kong’s Hang Seng dropped 0.6%, while Japan’s markets were closed for a national holiday.
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